30 Nov 2021 18:13:00
Progress reports quideline of corrective action in case "C" mark of AQ
-Translation- SET. 037/2021 30 November 2021 Subject: Progress reports guideline of corrective action in case of "C" mark of AQ Estate Public Company Limited To: Directors and the Manager The Stock Exchange of Thailand With reference to AQ Estate Public Company Limited has organized a meeting to provide information to investors and related persons (Public Presentation) in the securities of the company which were up to the mark "C" since the Company has shareholders' equity less than 50% of the paid-up capital for the financial statements in Q3/2021 ended 30 September 2021, the meeting is held on 30 November 2021 at 10:00 a.m. in the building AQ Estate Plc. No. 102 Rim Klong Bangkapi Road, Bangkapi Subdistrict, Huai Khwang District, Bangkok. The Company's reported results of the meeting are as follows. The cause of company lost a lot due to the provision for liabilities from the judgment of the Supreme Court's Criminal Division for Holders of Political Positions to compensate for Krung Thai Bank totaling 3,057.64 million baht. In the Supreme Court's Criminal Division for Persons Holding Political Positions ordered the joint company responsible for compensation of 10,004.47 million baht. The company paid amount of 1,635.74 million baht. Debt Obligations remain outstanding to pay for the amount of 8,368.73 million baht. Solution: The auction of collateral land amounted to 4,300 rai. The Board of Director set the selling price of land auction at 8,914.07 million baht, which is higher than the company payment amount. On 17 October 2018 was the first time in sale by auction. The bidder of land auction was secured for 8,914.07 million baht which the bidder deposit by the regulations of the Legal Execution Office of 448.50 million baht. Bidders are allowed to extend the payment period to 1 February 2019 for the remainder. On 24 January 2019, the auctioneer made a payment of 3,819 million baht for the auction assets group 1. The auction assets group 1 and 2 are owned by Golden Company and group 3 is owned by K&V SRS Garden Home Company which the Golden Company holds 99.97% of shares and the land came to be secured for Golden Company. K&V SRS Garden Home has filed a petition to revoke the sale of assets by claiming that it is unlawful for all 4 such cases. The court dismissed the petition and the petitioner filed an appeal one case and the court will not accept the appeal and the case shall be terminated. At present, the auctioneer bought such land and paid all land successfully. As for the amount of 1,196.02 million baht, the auctioneer placed the money to the Legal Execution Division. On 15 September 2020, Krung Thai Bank received the remaining land payment and has used a civil court judgment to request payment of all debts and Krung Thai Bank has recorded the whole amount as interest income. Hence, the company filed a lawsuit against Krungthai Bank and Krungthai Bank's management due to breach of the agreement. In the event that AQ Company wins the lawsuit in this case, the reserve liabilities are set to be transferred to deficit, resulting in the remaining loss of 4,275 million baht. As a result, the shareholders' equity amounted to 5,733.38 million baht which compared with the registered and paid-up capital, less discount on net share capital of 9,902.86 million baht. The ratio was 57.90%, exceeding the 50% threshold. Therefore, the Company is able to successfully resolve the C mark. On 25 September 2019, AQ Estate Plc. (Plaintiff) filed a lawsuit against Krungthai Bank Plc. (Defendant) in a civil case requesting Krungthai Bank to change its financial statements for the first quarter of 2019 in which the proceeds received from the auction of the secured land in the amount of 3,898.70 million baht to be recorded as damages in the case of the Supreme Court's Criminal Division for Persons Holding Political Positions. The Court has scheduled the date for litigation or prosecution witnesses on 18 November 2019. All defendants request permission to extend their testimony until 24 February 2020 and on 24 February 2020, 13 defendants have applied for an extension of time to file their testimony further 30 days. The court has allowed the postponement to make appointment for settlement of issues on 27 April 2020 and with the situation of outbreak of the Coronavirus 2019 (COVID-19), the court canceled the appointment and a new appointment for settlement of issues on 30 September 2020 and on 30 September 2020, Thirteen defense attorneys ask the plaintiff's attorney to withdraw the lawsuit against the 2nd to 13th defendants as the director of the 1st defendant acting on behalf of the 1st defendant. The plaintiff's attorney accepts the matter to propose the plaintiff's management by making appointment for settlement of issues or a legal decision on 19 November 2020. On this day, the defense attorney requested to postpone in diagnosis because Krungthai Bank has been diagnosed by Office of the Council of State that was not being a state enterprise. Therefore, the problem is that the prosecutor officer could defend as the defendant for all 13 defendants or not and Plaintiffs are discussing ways to compromise the debt to the defendant, therefore does not oppose the postponement of appointment for settlement of issues on 22 February 2021, on the day The court to postpone the settlement of issues on 14 June 2021. The present The court to postpone the settlement of issues on 13 September 2021, on this day The court to postpone the settlement of issues on 27 October 2021, today the court to determine of the plaintiff witness hearing on March 22-23 ,2022 and the defendant witness hearing on March 24,29-31,2022. The Committee agreed to await the outcome of the civil case above. If there is any progress in such case, the Company will continue to report the progress to shareholders and investors through the SET system. Please be informed accordingly. Yours Sincerely, (Mr. Chamnarn Wangtal) (Mr. Michael A. W. Fernandez) Director Director ______________________________________________________________________ This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.